"The market is only truly random if kept within its parameters of limitations."

"Buying power is staying power, with enough staying power you will always be profitable."

Welcome to "The Trading Truth"!

I am authoring this site to make you more aware of your trading enviroment. Whether you are a trader, investor, 401K holder, or have any part of your life linked to or affected by the markets, there should be some valuable information found here for you. You will... (click to continue)

Thursday, January 1, 2009

Multi-party agreement

I have individuals who are always looking for opportunity. This is where I match up potential clients.

The multi-party agreement works like such:

An individual acts as the margining entity. They have capital to back positions and want a percentage return at minimal risk.

Another individual acts as the investing party who wants more buying power for theor limited capital available.

The account is controlled via a "limited trade authorization" through the broken and granted permission to be traded by myself.

The margining party is the primary account holder, or a joint account can be set up between parties, or however they deem appropriate.

An example would be as such:

The investor has 5K of capital to place at risk. This party is fully aware the capital will be margined and will be 100% at risk of loss.

The margining entity backs the account with 50K of trading capital. A combined total of 55K is now available to trade. In the event the account suffers a 10% draw-down (net account liquidity reaches the 50K) all positions are liquidated and the contract is closed. All monetary gains collected during the period the account remains above 50K in net liquidity are distributed between the parties involved (the margining entity, the investor, and myself).

If you may be interested, email me with your capital allotment and the roll in which you would like to participate.